Connecticut, which changed its corporate tax structure and apparently caused GE to start looking at other states, quietly attempted to lure the company back.
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Its new home will be Boston’s fast-growing Seaport District. Both vigorously courted the 0 billion company, which was also considering locations in other states. “[But] the ecosystem that we have here in MA to support innovation is what won us this prize”. GE is set to receive $1 million workforce training grants and up to $5 million for an “innovation center” which will “forge connections between GE and innovators from MA research institutions”.
GE aspires to be the most competitive company in the world and we want to be at the center of an ecosystem that shares our aspirations, argued the company’s CEO, Jeff Immelt in the statement. “For two decades, we’ve had companies move out of our city. It is essential that Governor Malloy and legislative leaders find a more prudent and responsible path forward for CT and its citizens in their current budget negotiations”. Immelt visited the New Hampshire plant in November during which the GE chief executive appeared with U.S. Sen. “Successfully landing one of the world’s biggest companies unfurls a giant banner, one that essentially says “We’re open for business” to the world”.
Boston Mayor Martin J. Walsh celebrated the GE move to Boston.
The Beige Book described Boston’s economic activity as “upbeat”.
“There were a lot of things that could have been done better and if we had to do them over again… but GE said in their article this has been in the planning for three years”, he said, so tax issues “obviously couldn’t be everything”.
And GE’s impending arrival should erase any lingering notions that the state is antibusiness – the move had to make financial sense for it to commit.
A dispute over taxes in Connecticut-along with 1 million in tax breaks and other incentives from Boston and Massachusetts-aren’t the full story of General Electric’s decision to relocate to the Hub. It now employs almost 5,000 people in MA. This is about GE’s business.
About 800 employees work at GE’s headquarters, but Connecticut Gov. Dannel Malloy on Monday said he expected most of the jobs would remain in his state, even if the headquarters were relocated. But it’s not totally clear what happens to the 600 other CT employees.
Among those who had given credence to the possibility Rhode Island could land GE’s headquarters was John Frey, a CT lawmaker with ties to the company.
GE plans to move headquarters employees to a temporary location in Boston, starting in the summer.
But Murray said the move, when complete, should spell positive results for Worcester. Tony Hwang, a Connecticut Republican, said about the move. This was probably the first instance in state history of a company making a request of that nature, officials said at the time. GE’s corporate slogan, “Imagination at Work”, might also apply to the thinking that went into crafting this deal.
My take is that GE’s move to Boston is a much bigger victory for MA than it is a loss for NY.
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General Electric has chosen Boston as the next location of its corporate headquarters. “Will any of these businesses be next to pack up and leave?”
